Latest Cannabis News

[CANADA – June 29, 2015] For years illegal marijuana has been transported to the United States from Canada. This leaves many to wonder could legal, made in Canada marijuana, become a global export. New rules were introduced on April 1, 2014 that laid the groundwork for what many supporters feel may be the start to legalization of the substance in Canada. Under the Marijuana for Medical Purposes Regulations (MMPR), Health Canada no longer provides marijuana to those with authorized medical needs. Instead licensed commercial producers provide for those with medical needs.

In Canada, the general public funds the marijuana industry as there are publically traded marijuana companies in Canada. Also, banks are financing the marijuana business. Though the United States state voters approved the personal use of small amounts of marijuana for recreational use in Colorado, Washington, and Oregon, some believe that widespread legalization is not in the near future. Some wonder if Canada’s business will allow us to cultivate business practices and techniques, allowing export to the United States once both countries legalize marijuana. There are some differences in the U.S. system and the Canadian system. They are opposite in many ways. Canada has a stable federal system that affords many more advantages than the U.S. In the U.S. laws are dramatically different from state to state and the government is far more stringent. In regards to the quality assurance, Canadian quality assurance regulations are more stringent than that of the U.S.

Though it may be a reality in the future, marijuana made in Canada and exported to the U.S. may one day be a reality. Though Canadians are more progressive in their regulations, there is a long list of applicants that invest significant amounts of money for cultivation licenses that have been blocked by the bureaucratic procedure. In the end, many supports believe that the voice of the medical community will hold a strong arm, paving the way to legalization in America.

[GERMANY – June 29, 2015] – Germany recently marked a huge milestone in support of the legalization of marijuana. Germany created the first comprehensive draft law, which sets out to regulate the production and distribution of marijuana and it’s by products, in collaboration with recommending the implementation of prevention programs. Imagine walking into a coffee shop to buy a couple grams of marijuana. Instead of calling the police, the cashier provides drug education and drug safety, prior to finalizing the sale. Many backers see this as the future of the marijuana industry in Germany. The comprehensive draft law stipulates who will get a permit to buy and sell marijuana and it’s by products, product pricing, and how much tax is required to be paid on the purchase and selling.

Though the draft law represents as a precedent for Germany, no one is getting their hopes up. Many supports agree that the road to legalization in Germany is filled obstacles. Some describe it as a pointless attempt as the parliamentary committees and conservatives in power will never let the law pass. Long before comprehensive draft law was presented, the district of Friedrichshain-Kreuzberg in Berlin was preparing to open the first legal Amsterdam-style coffee shop in Görlitzer Park. However, nearly two years later, the coffee shop is still not launched and the project is still in the works. Though many supports feel that full legalization is still a few years away, the draft law creates and opens up a discussion on the legalization of marijuana. An estimated three million Germans use drugs on a regular basis, consuming between 200 - 400 tons of marijuana a year. Additionally, recent surveys show a steady increase in the growing support for marijuana legalization. Despite this, many conservatives have strong opinions in regards to the war on drugs and are searching for answers in an attempt to gain control. They feel that chasing after drug dealers and drug user does not work, and neither will legalizing them. Furthermore, they feel that many questions need to be answered in regard to the possible dangers that could result from the anticipated increased consumption that would occur through legalization.

Many supporters of the draft law feel that with the proposed law, the discussion is gaining momentum in support of marijuana legalization. Furthermore, their thought is that the war on drugs costs millions so why not tax it as a legal drug trade, and earn money while doing so? The Netherlands, Portugal, Uruguay, and even the United States have already taken steps towards legalization however, the Germans maintain that the federal system holds many barriers leading to difficulties in legalization. Though the comprehensive draft law is a great step towards the legalization of cannabis, legalizing a drug that is illegal is not an easy task as many regulations surround the movement.

In the case of Brandon Coats vs. Dish Network, a quadriplegic with medical authorization to use medical marijuana, was fired by Dish Network in 2010 after he failed a company drug test. The ruling marks a victory for employers with a zero tolerance drug policy.

[COLORADO – June 29, 2015] – The Colorado Supreme Court ruled earlier this month that employees can be fired who use medical marijuana, even though medical marijuana use is legal in the state. The recent ruling upheld Dish Network's firing of Brandon Coats for smoking marijuana outside of work. The ruling is a victory for employers wanting to reinforce the principles of a drug-free workplace.

In the case Brandon Coats vs. Dish Network L.L.C., the former telephone customer service representative for Englewood, Colorado-based Dish Network argued that he was wrongfully terminated back in 2010 for using medical marijuana outside of his workplace. Coats is a quadriplegic. When he was 16 years old, he was a passenger in a vehicle that crashed into a tree. The accident left him paralyzed in over 80 percent of his body. As a result, he has suffered from severe involuntary muscle spasms and seizures ever since. Coats had a doctors medical authorization to use medical marijuana, claims to have never used the drug while at work, and presented that he was never under the influence of marijuana while at work. Though marijuana has been legal in Colorado since 2000 and Dish Network did not dispute “non-use claims”, Coats was fired by Dish Network after failing a company drug test. Colorado is one of 24 jurisdictions that have legalized medical marijuana. Colorado is also one of five jurisdictions that have legalized marijuana for recreational use.

Dish Network stands by their zero-tolerance drug policy, citing that medical marijuana is still illegal on the federal level. As such, Dish Network adamantly says the use of marijuana for any reason, including authorized medical use, is cause for termination. The issue at hand is the conflicting legality that is presented between the state and the federal law. Though marijuana is legal on the state level, it is not on the federal level, which causes confusion and conflict for many. There is a law in Colorado that protects employees from being terminated for lawful activities, however in the Supreme Court ruling, the court cites that the law refers only to activities which are legal under both state and federal law. "Therefore, employees who engage in an activity such as medical marijuana use that is permitted by state law but unlawful under federal law, are not protected by the statute," said the court's decision. The court further found that even though Colorado has legalized marijuana for recreational use that businesses may still bar marijuana use by their employees.

The court’s decision can have broader legal implications for other states as they move to legalize marijuana use for recreational and/or medical use, as it is still illegal on the federal level. The case has the ability to set a precedent for other states as the states lawful acts statutes are being trumped by the federal law. Thought this case is based as a Colorado decision, the court’s decision brings to light the discrepancy and issues involved with the lawful use of medical marijuana and employers rights. In essence, medical marijuana patients who legal use it for medical purposes actually do not have the right to use it. For those prescribed marijuana legally for medical purposed, the issues and clear discrepancies need to be presented and addressed by state legislature to provide protections to those with medical needs.

Legalization may make it more difficult to buy marijuana in Canada. Vancouver City Hall announced that they will start licensing the Vancouver city marijuana dispensaries.

[VANCOUVER, BC– June 23, 2015] – Though the vice laws in Canada have seen many changes in the last few years, it has not radically affected how law enforcement and the Canadians behave. On April 20, 2015, Vancouver was home to the world’s unofficial marijuana holiday. More than 30,000 people convened around the Vancouver Art Gallery for the annual smoke out. The event that began in the 1990’s has since become the largest open air markets in Vancouver. The event included more than 300 vendors selling marijuana infused products. Interestingly enough, since the event is technically considered to be a protest, there are no permits required, no age limits, and no sales tax collected, as it is considered illegal transactions. Several thousand people gathered for the event, and it is treated more as a civic union rather than something to be stopped by the police. Though police are there, they are only there to direct traffic and assure public safety. This leads one to wonder, is it legal or illegal?

Technically, marijuana, it’s by products, derivatives and preparations, are banned in Canada. Those needing it for medical purposes can obtain marijuana, with a doctor’s authorization, from an Ottawa-sanctioned catalogue of commercial growers. Otherwise, those found in possession of marijuana are subject up to five years in a federal prison. In current times, thousands live their entire lives without a clue that cannabis is illegal. Though in smaller locales being in possession of a joint might get you arrested, in larger locales, it is easier to get high now than it could ever be under legalization. As such, Vancouver City Hall recently announced that they would begin licensing over 80 of the city’s marijuana dispensaries. This is more than the amount of McDonald’s franchises in the area. Though the city does not have jurisdiction regulating the sale of marijuana, it does have jurisdiction to regulate how and where businesses operate. Despite the license Vancouver provides dispensaries, the purchase and sale of cannabis remains illegal. The activity continues however because the Vancouver law enforcement has openly declared they have no intention of doing anything about it. With this, most citizens under the age of 30 years old, have never known a world in which they could be cited for anything less than shipping a container full of cannabis. It is important to note that though there is a sense of acceptance to marijuana the rally event sent 64 people to hospital with symptoms of nausea and vomiting. Seven per cent of drivers that were injured in car crashes had consumed marijuana just hours earlier, and two year ago, marijuana was named as the reason for a trail derailment of a B.C. train.

With the ability to obtain marijuana tax-free and readily available on most street corners in Vancouver, other cities may quickly following leading many to wonder, is it legal or illegal?

Things have gone south for the burgeoning Illinois medical marijuana industry. The previous state governor, Gov. Pat Quinn left office without authorizing business license applications from cultivators and dispensaries. Quinn has left these to his successor, Gov. Bruce Rauner.

Gov. Rauner’s stance on legal cannabis is already know. In his 2014 campaign for office, Rauner stated that he would have vetoed legalizing medical marijuana in Illinois if he been in office. Gov. Bruce Rauner’s criticism for marijuana, medicinal or recreational, has the industry worried what will happen to it under the new governor. If Gov. Rauner forges ahead in the direction his rhetoric points to, it could mean the end of the state’s four-year pilot program for medical cannabis.

This state of limbo Rauner has put the industry in is hurting business owners severely. All their business plans must be put on hold until the governor reaches a decision. Medical marijuana growers and dispensaries have already sunk anywhere from $100,00 to $1 million into applications and legal fees, as well as renting or building work spaces. Investors who helped fund these business are now backing out or growing impatient because of the wait. All this money and effort on the part of marijuana entrepreneurs competing for the state’s 60 dispensary and 21 cultivation license are now looking at pretty big losses.

State Representative Lou Lang, D, who was a major proponent of the bill legalizing medical marijuana, said there are roughly four paths Gov. Rauner could go down. The first is that the governor would do a slow evaluation of all the applications or hit the reset button on the whole program. In effect delaying the whole thing by weeks or months. The second possibility is that Gov. Rauner would do nothing. He’d simply refuse to sign anything, potentially holding up the program indefinitely. The third situation is that Rauner could throw out the Quinn administration’s system for evaluating licenses and develop his own. This too would put the cannabis industry on hold for a long time and could lead to lawsuits and long-term uncertainty. The fourth, and best, possible outcome is that Gov. Rauner does a review of the process and moves forward with giving out licenses.

People within the marijuana industry are starting to take action though, regardless of what the governor decides. Rep. Lang has introduced a bill that, if passed will help extend the life of the medical marijuana program. Some 35 to 40 business applicants and their lawyers met in Chicago to form the Cannabis Association of Illinois and push the issue forward with Rauner. The Rauner administration has given no clear idea of what decision they will make, but it appears that the fate of the Illinois medical cannabis industry is at the mercy of the new governor.

Even though 23 states and the District of Columbia have legalized medical and recreational marijuana, the legal pot industry faces a mountain of issues. The biggest one right now is that the industry is a cash-only business. All purchases and sales related to marijuana have to be made with cold, hard cash. The majority of this problem stems from the fact that the federal government still classifies marijuana as an illegal substance, so banks that took money from marijuana stores run a large risk of being shut down by the Department of Justice.

The Obama Administration attempted to curb this issue by giving the Treasury and Department of Justice new guidelines on how to deal with money from state-approved marijuana stores. These federal statements basically told both departments not to go after and seize such funds. Unfortunately for the pot industry, even this hasn’t encouraged banks to accept legal pot money because most banks are still wary of federal government intrusion.

Being locked in a cash-only medium hurts legal pot sellers on every level. Storeowners have to worry about theft and robbery, since their money is very vulnerable. Since all sales are made in cash, them and their employees have lots of it on hand, making them easy targets for robbers, posing a serious danger to the people of the industry. Large amounts of cash then need to be transported from the stores to banks. Only about 105 banks nationwide have agreed to take pot money. Marijuana sellers have been forced to hire armored truck or other armed services to take, literally, tens of thousands of dollars at a time to deposit them.

The House of Representatives passed two bills which would have helped end this cash problem. The first prohibited the DEA from interfering with state cannabis laws. The second bill stopped the Treasury from penalizing banks that took legal marijuana business money. However, since the bills are amendments on a larger, partisan bill, it is unlikely to survive the Senate.

In Colorado, a solution may be underway to solve this problem. The Colorado state government issued a charter to the Fourth Corner Credit Union to be the first financial institution to serve the legal marijuana industry. Fourth Corner is already operating with Colorado’s permission, but it needs a master account with the Federal Reserve and insurance from the National Credit Union Administration to be legitimate. Fourth Corner is waiting for approval from the federal government: the decision will decide whether Fourth Corner and similar credit unions may or may not be a thing in the future. The marijuana industry will, for the time being, have to stay a cash-only industry.

Over the past five years, marijuana legalization in both the medical and recreational fields have shifted public perception. Now legal in eighteen states plus the District of Columbia according to USA Today, there’s no doubt the cannabis market is growing astronomically across both the United States and Canada.

According to an ArcView Market Research report, the national cannabis market was estimated at $1.73 billion dollars in 2014. The same ArcView study estimates that the national market is on track to exceed $10.2 billion dollars by 2018, nearly doubling every two years. In the economic downturn the world has faced and especially in North American markets, the marijuana industry has become the California gold rush of the modern era.

In states like Arizona, the ArcView study indicated that the marijuana industry market was worth an estimated $142.19 million in 2014, up $35.37 million from 2013. Companies like “weGrow” out of Oakland, California have taken this tidal wave of marijuana entrepreneurship and again expanded the horizon. weGrow is becoming the first company to offer an initial IPO in the marijuana industry.

weGrow just recently opened a twenty one thousand square foot office space in Phoenix, Arizona. This company isn’t a gigantic dispensary; weGrow doesn’t actually sell marijuana at all. weGrow specializes in providing the “products and services to help safely and responsibly cultivate it.” weGrow assists through consultation on everything from licensing to dispensary and cultivation facility opening. Companies like weGrow highlight the diverse market of the marijuana entrepreneurship boom.

A recent Huffington post article states that Colorado‘s retail and wholesale marijuana sales total approximately $600 million annually. Colorado Governor Hickenloopers’s recent budget proposition estimated marijuana industry tax revenue to equate to $98 million, $40 million of which would be set aside for public school construction for 2014. The marijuana industry provides anywhere from 7,500-10,000 jobs in Colorado alone according to Marijuana Industry Group’s recent study.

Dispensaries in Colorado are also diversifying their selection, offering much more than just marijuana. In a recent CNBC Business article by Rob Reuteman, Rob was surprised at one dispensaries selection, where it was said:

“Marijuana is bought and sold in a dizzying list of edible forms, such as as caramel corn made with marijuana-laced butter, medicated chocolate covered cherries, rice sticky, rice-cake treats, frozen pizzas made with pot. Mile High Ice Cream in Denver makes dozens of flavors with marijuana. There are bottled sodas, pills and tinctures.”

In states like Washington, the Economic and Revenue Forecast Council projects the state will raise approximately $190 million over the next four years from the marijuana.